The Ownership, Remuneration, Corporate Governance, and Financial Performance of Indonesian State-Owned Enterprises

DOI

10.2991/aebmr.k.200410.045How to use a DOI?

Keywords

ownership, remuneration, corporate governance, SOE, financial performance

Abstract

The purpose of this research is to investigate the relationship between ownership, remuneration, corporate governance, and the financial performance of Indonesian state-owned enterprises (SOEs). The research population is all state-owned enterprises listed in the Indonesia Stock Exchange, and the samples were selected using purposive sampling. Using generally least square multiple regression analysis, this study finds that public ownership has a positive and significant effect on financial performance. Independent board of commissioners and independent audit committee have a significant positive effect on financial performance, but the size of board of commissioners and the size of audit committee have no effect on performance. The board of commissioners’ remuneration has a negative effect on performance, while directors’ remuneration has a positive effect on performance. The results also imply that remuneration at executive level has a positive impact on performance, but at supervisory level it has no effect, except adding to the burden. Leverage, as measured by debt to assets ratio, has a negative effect on performance.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Surifah
AU  - Iffah Rofiqoh
AU  - Krismiaji
PY  - 2020
DA  - 2020/04/13
TI  - The Ownership, Remuneration, Corporate Governance, and Financial Performance of Indonesian State-Owned Enterprises
BT  - Proceedings of the 3rd Asia Pacific International Conference of Management and Business Science (AICMBS 2019)
PB  - Atlantis Press
SP  - 295
EP  - 300
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200410.045
DO  - 10.2991/aebmr.k.200410.045
ID  - 2020
ER  -